Rates for Mobile Merchant Credit Card Processing

Rates for mobile merchant credit card processing usually do not differ dramatically from rates for in-store credit card processing. This is because the processing isn’t that different: even though your business and the credit card terminal are mobile, you are still swiping a credit card for payment. Find out what your expenses will be if you decide to take your payment processing mobile.

The Merchant Account
Whether you’re a merchant who has owned a store that hasn’t moved in fifty years or you just opened a mobile business, you need a merchant account to accept and process credit card payments. Opening and maintaining that merchant account does, of course, cost money. However, unlike other types of accounts, merchant accounts have several different rates that you must take into account when deciding whether or not you want to take on the expense of processing credit cards.

One-Time Fees for Mobile Credit Card Processing
Merchant account providers may charge you a couple of one-time fees when you open a merchant account. These fees include an application fee to check your company’s credit history and a setup fee for opening up the account. However, not all merchant account providers charge these fees. Some will have the fees, but will offer to waive them, while others will only charge one or the other.

Monthly Fees
Most merchant account providers charge two types of monthly fees for mobile credit card processing. The first is the monthly account fee that you will pay simply for maintaining an account with the provider. The second is the monthly minimum fee. You will only pay this fee if your transaction fees don’t end up surpassing whatever the minimum is for each month.

Fees for Every Transaction
The most important rates you need to take into account with a mobile merchant account are the fees you will pay for every credit card transaction. The first is the discount rate which is simply a percentage of every transaction you make. Because it is a percentage of the sale and it occurs with every transaction, this rate can add up fast. The other transaction fee for credit card processing is called the “per transaction” fee. Rather than a percentage, this is a flat rate for every transaction.

Comparing Rates and Services
When choosing a merchant account provider for mobile processing, an important factor is, of course, the rates, but make sure you’re getting the services you need for those rates. Always compare a few merchant account providers before deciding on one. First, you’ll want to compare the discount rates: if you’re making a lot of credit card sales, you’re making a lot of money for your business, but you’re also spending a percentage of that money on your discount rates. Make sure the discount rate is one that your company can afford. Second, don’t overlook the one-time fees. When you’re starting a new company, a high setup fee for a merchant account is an expense that you might be able to avoid. Last, don’t just concentrate on the rates. You’re paying for the services, including customer support. Confirm that your merchant account provider has reliable customer service that is available during the hours that you might need it.

The biggest difference in rates for mobile credit card processing is the equipment. Wireless credit card terminals usually cost more than traditional terminals and if you need more than one, that cost can quickly go up. To save money, talk to your merchant account provider about any deals they may have on wireless terminals. Some providers will even offer you a free terminal when you open an account.

Every business has to consider the cost of doing business and credit card processing is no exception. When you know what you have to spend, you can make a more informed decision on the provider that is right for you.

Find more information about mobile credit card processing from North American Bancard:

Mobile Credit Card Processing Equipment
Learn about the equipment you need for mobile credit card processing, including important features and accessories.

The Businesses that Need Mobile Card Processing
Not every business needs mobile card processing, but most businesses can benefit from it. Learn more in this article.